Aslam o Alikum, we are approached by one of the government department to rent full double story house for 3 years contract with one year advance payment.
Considering this is government i guess the risk of non payment or releasing the house after 3 year will be minimum?
Is there anything else for me to worry about?
I am out of Pakistan, is there standard contract, is it worth involving a law firm or real estae, please share your thoughts?
Jazakh Allah Khair
Irfan Doha
Fawad replied on Thursday, June 3, 2010 05:38 AM
Salam,
There is always chance in this case that the first payment might be delayed due to clerical procedures, confirmation from department etc. It also depends on which department you are talking about. I have experience with Wapda, where visiting Wapda House several times it took still more than a year when we received the 1st payment. Off course it is bit secure as Govt. department dont run away. More at that time we paid almost 25% Excise Duty on monthly rent. |
Sajid replied on Thursday, June 3, 2010 06:19 AM
Dear Irfan,
I really had a very bad experience by renting the house to the Government department. Your house will be used roughly and the damages will be higher than the rent what will you collect for entire three years. Keep in mind that there will be no maintenance from the tennant since it will require a lot of formailties to get it approved from the government. you will be solely resoponsible for the maintenance.
I think you should make a video of the house prior to renting it out and make them responsible in writing to give you the possesstion at the same position after the contract expired. I am also overseas pakistani, but I myself decided not to rent my house to anyone regrdless how much they offer. Because at the end you pay more than twice of the rent you collected to bring the house back in the same condition.
Thank you, |
Irfan replied on Thursday, June 3, 2010 09:11 AM
In this case they are offering us 1 year advance payment !!!, yeh wear and tear i have to watch out !! but if i get advacnepayment should e ok
one factor is since this is goverment so i feel secure that they will not do QABZA on my house?
The department is also part of goverment charity program, so i also am more willignto give me house (not only for money) but knowing house will be used for a deparmtent which will serve needy...
I might ask tem to give a deposit say 3 month's worth of rent as security for wear and tear.
Thanks, Irfan |
Irfan Khattak replied on Friday, June 4, 2010 01:00 PM
Irfan Sahib, seems alright. No need of involving anyone. What you have to do is to get Rs. 50 or 100/- Stamp paper in Kachehry and ask from the stamp papers wala that who is making the rent contract over here.Go to him and he will do the needful for you. It should contain following clauses in addition to the standard format:-
1.Period of contract 2. Rate of rent 3. Mode of payment of rent 4. Security amount (refundable after clearance of all bills, damages etc, if any )5. Notice of vacation period 6. Purpose of rent ie residential or commercial etc etc as per agreed upon by both the parties.
Owner and Rentee signatures + Tow witnesses signatures (One from rentee side and one from Owner side) and then Attestation by Notary Public. Keep original stamp paper with you and hand over photocopy to the department.
This process will hardly cost you few hundered Rupees like Rs. not more. Wish you best of luck |
